Cost of Living Comparisons Around the Country for 2023

Each year, the Bureau of Economic Analysis (BEA) updates its regional price parity (RPP) tables, offering valuable insights into cost-of-living differences across the United States. This information is particularly helpful for individuals planning a move or trip, as it highlights potential price or wage variations. For businesses, especially restaurants, understanding these regional disparities is crucial when expanding to new locations, as it impacts costs, wages, and overall operational expenses.

High-Cost Regions in 2023

In 2023, metropolitan statistical areas (MSAs) on the West Coast dominated the list of most expensive places to live. Other high-cost areas included Boston, Honolulu, Miami, and New York. Below are the top 15 MSAs, ranked by their RPP index:

1. San Francisco-Oakland-Berkeley, CA (118.225)
2. Los Angeles-Long Beach-Anaheim, CA (115.455)
3. Santa Maria-Santa Barbara, CA (113.488)
4. Oxnard-Thousand Oaks-Ventura, CA (113.470)
5. Seattle-Tacoma-Bellevue, WA (112.991)
6. Salinas, CA (112.988)
7. San Jose-Sunnyvale-Santa Clara, CA (112.867)
8. Santa Cruz-Watsonville, CA (112.590)
9. New York-Newark-Jersey City, NY-NJ-PA (112.473)
10. Miami-Fort Lauderdale-Pompano Beach, FL (111.824)
11. Napa, CA (111.770)
12. Boston-Cambridge-Newton, MA-NH (111.574)
13. San Diego-Chula Vista-Carlsbad, CA (111.491)
14. San Luis Obispo-Paso Robles, CA (110.819)
15. Urban Honolulu, HI (110.246)

For reference, an RPP index of 100 represents the national average. Thus, prices in the San Francisco-Oakland-Berkeley MSA were 18.225% higher than the national average in 2023.

Low-Cost Regions in 2023

At the opposite end of the spectrum, Pine Bluff, Arkansas, recorded the lowest RPP index among the 384 MSAs analyzed, with costs 19.675% below the national average. Here are the 15 least expensive MSAs in 2023:

1. Pine Bluff, AR (80.325)
2. Monroe, LA (83.601)
3. Fort Smith, AR-OK (85.062)
4. Brownsville-Harlingen, TX (85.183)
5. Texarkana, TX-AR (85.308)
6. Kingsport-Bristol, TN-VA (85.354)
7. McAllen-Edinburg-Mission, TX (85.555)
8. Florence-Muscle Shoals, AL (85.618)
9. Joplin, MO (85.648)
10. Jonesboro, AR (85.686)
11. Hot Springs, AR (85.801)
12. Cumberland, MD-WV (85.820)
13. Topeka, KS (85.887)
14. Youngstown-Warren-Boardman, OH-PA (86.008)
15. Enid, OK (86.142)

State-Level Insights

RPP data is also available at the state level, including the District of Columbia. In 2023, California was the most expensive state, with prices 12.581% above the national average. The 10 most expensive states were:

1. California (112.581)
2. District of Columbia (110.804)
3. New Jersey (108.883)
4. Hawaii (108.609)
5. Washington (108.562)
6. Massachusetts (108.238)
7. New York (107.626)
8. New Hampshire (105.345)
9. Oregon (104.721)
10. Maryland (103.965)

On the other hand, Arkansas had the lowest RPP index, with prices 13.492% below the national average. The 10 least expensive states were:

1. Arkansas (86.508)
2. Mississippi (87.292)
3. South Dakota (88.095)
4. Oklahoma (88.286)
5. Louisiana (88.345)
6. North Dakota (88.572)
7. Iowa (88.767)
8. West Virginia (89.772)
9. Kansas (89.965)
10. Alabama (89.970)

For the complete regional price parity data, download the MSA list here or the state-by-state breakdown here.